This is a LEAPS portfolio update and I will share what has changed since my last update on 16 Nov 21. I will also share all the contract details such as my strike price, expiration date, premium paid, delta and expected growth for every contract. I hope it will be a good reference for you as you learn about my options trading philosophies.
This is my LEAPS portfolio summary on 16 Nov 21:
As mentioned in the last update, my immediate plan is to sell off those LEAPS that expire the soonest, i.e. Jun 22 and Sept 22 LEAPS (in the red and orange boxes) and then add on new LEAPS that expire furthest away.
In the recent market correction, I have done that by selling off the LEAPS contracts that expire soonest and locking in the profits while adding new LEAPS that expire on Jun 23 and Jan 24. So, this is the new summary table:
The number of LEAPS contracts that I own increase from 84 to 142 because I think December’s correction gave me an opportunity to buy more LEAPS contracts on my strong conviction stocks at a lower premium. I have reduced most of my LEAPS positions that expire on Jun 22 and Sept 22 and added significantly more LEAPS expiring on Jan 24. There are some LEAPS that I did not clear because they have not turned profitable yet. I am hoping for a year-end Santa rally to give me the opportunity to take profits on those positions.
Lastly, the spreadsheet containing all my records of my open LEAPS positions can be downloaded here:
https://tinyurl.com/yxf4fw2x
Moving forward, I will continue to add to my LEAPS positions expiring on Jan 24 as I feel that 2022 can be an uncertain year with tapering and interest rate hikes. With less money being printed by the US Federal Reserves, it means the share prices of even big techs will not increase as fast as they did in 2020 and 2021, which will make LEAPS contracts less profitable as compared to those years. There may be more corrections next year when tapering is completed and interest rates are finally raised. Thus, I am giving myself a safety net by buying LEAPS that are at 1.5 years or 2 years to expiry. I may also be adding more longer-term LEAPS, such as those expiring on Jun 24, when they are available.
Related Articles:
My Guiding Principles Of Buying LEAPS
Revealing My LEAPS Portfolio (16 Nov 2021)
How Does LEAPS Works And How I Use LEAPS To Maximise Gains?
Learning Investment With Jason Cai 
Hi Jason,
How much cash/ savings in terms of % of your portfolio do you reserve for adding more leaps when market corrects? Do you still using your salary to fund your leaps purchase?
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Hi Andrew, I keep less than 5% cash reserves. Most of the time, it is almost all-in. How do I get extra cash to buy the dip? I usually sell those contracts that have profits and use the capital to buy more. And yes, I do have new capital coming in every month from the remaining of my salary after deducting my expenses.
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